Detecting and Preventing Invoice Fraud
Detecting invoice fraud in companies is an important way to keep finances safe and secure. Companies should always be aware of any suspicious or unexpected invoices, as these could be signs of a fraudulent activity. It is also essential to have a system in place for monitoring invoices to ensure accuracy and compliance with regulations. If any irregularities are found, the company should investigate further to determine if it is indeed a case of fraud. Keeping up-to-date records and verifying information on invoices can help protect your business from becoming a victim of fraud.
Invoice frauds includes the sending of phony invoices seeming to come from a legitimate company you deal with. The invoice may occasionally be sent using hacked emails from your supplier, in which case the email address is legitimate but the payment information has been changed to the fraudster’s.
Prior to paying using new account information for the first time, it makes sense to call your suppliers at the number listed on their website to confirm their payment information.
Here are 4 ways to save yourself from invoice fraud
- Adopt a 3-way system: You’re considerably less likely to pay a false invoice if you can link each invoice to a purchase order and a receipt for the products.
- Monitor Invoice amounts: Amounts on invoices can give hints as to whether the invoice is legitimate or not. Checks that barely pass the $1,000 mark (like $999.98), or if your organization, for example, requires additional scrutiny for invoices over $1,000, should be suspicious.
- Validate and screen Vendors: Amounts on invoices can give hints as to whether the invoice is legitimate or not. Checks that barely pass the $1,000 mark (like $999.98), or if your organization, for example, requires additional scrutiny for invoices over $1,000, could be suspicious.
- Activate Automation: Automation equips you with the resources you need thanks to automation in the AP department to put all these other fraud-prevention strategies into practice more skillfully. It’s perhaps the most crucial action you can take to prevent invoice fraud.
What to do if you are compromised?
Call your IT provider and all of your clients as soon as you can if you find that your company email has been compromised and that false bills have been sent to clients.
Call your bank right away if you unintentionally sent money to a scammer’s bank account. Local transactions can be difficult to block, but if you move quickly enough, you might be able to intercept international ones.
IVI – All the Automation You Need with All Your Business Partners!
Digitalizing your outbound invoice flow can make managing invoices easier and faster than ever before. With automation, you can quickly generate, send and track all of your invoices in one place – saving time and effort with every step. Automation also ensures accuracy so that you can rest easy knowing that each invoice is properly processed. Get started today and revolutionize how you do business!
The Ivi Network makes it simple to transact and exchange invoices and financial documents electronically with over 1 million Buyers and Suppliers and hundreds of global partner networks. This means your Suppliers and Customers are likely to be already on the ivi Network or on one of our global partner networks.
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